26 Feb 2015

A question about : Hotels.com and VAT reclaim

I use hotels.com quite regularly for booking my hotels around the UK and Europe. As we are now VAT registered I am trying to claim back the VAT on these stays in the UK. Problem is hotels.com do not charge vat and if I book and pay through hotels.com I cannot get an invoice/receipt from the hotel I have stayed in? Has anyone else come across the same issue? I assume the way around it is to pay for the hotel on check out?

Best answers:

  • Hotels.com is an agent, it doesn't sell hotel rooms, it just points you in the right direction and handles the money side of things on behalf of the customer and the hotel.
    Have a read of this article https://www.taxation.co.uk/taxation/A...tel-roundabout it is a bit of a mind blower, but if hotel.com say they are not issuing VAT invoices, then this would indicate the contract is between you and the hotel and so the hotel should issue the receipt for payment.
    If the hotel refuse then ask them why it is, presumably if you cancel the hotel room the hotel would still charge you so if the hotel still charge you, then this would indicate to me that the hotel is the supplier, not hotel.com
    To be honest, provided you have a booking receipt from hotel.com and the value of the booking is les than Ј250 then you can treat the receipt/email as a simplified VAT invoice and recover the VAT. Just make sure the booking is in the name of XYZ Ltd rather than your own name, just to stop HMRC getting confused between a personal hotel trip and a business one.
  • Presumably you have just breached the turnover required for becoming VAT registered. Presumably you have looked into if traditional or flat rate VAT is better for your business based on the company expenses/
  • Firstly Hotels.com are a booking agent.
    Secondly they are based in the US.
  • Use booking.com, then you pay the hotel and so will get a receipt off the hotel.